Hess Enters Agreement with KCA Deutag for Paris Shale Program

On November 10, 2010, Toreador's strategic partner, Hess Oil France (Hess), executed an agreement with KCA Deutag for the provision of drilling and related services for the initial six firm wells targeting the Liassic shale oil source rock system.

The first well in the series, which is forecast to be spud in January 2011, will be located on the Chateau Thierry exploration permit. The well will be drilled vertically to an expected total depth of 3,000 meters. The primary geologic target of the well is the Liassic section, the top of which is expected to be encountered at an approximate depth of 2,300 meters. Conventional cores will be taken throughout the Liassic section to evaluate reservoir and rock properties.

The Eurorig class land drilling rig T-208 drilling will be used for the operations. It is a 1,550 hp, top-drive unit that will be mobilized from northern Spain and will be capable of drilling vertical and horizontal wellbores. The T-208 is designed to be in compliance with the latest European regulations, has low emissions, and a high degree of automation.

Toreador will remain operator of record in the near-term while drilling operations are carried out under Hess' supervision.